Irrigation management transfer project : contract completion report, May 30, 1996-November 20, 1999

(CADI), on TA (5/96-11/99) to the Irrigation Management Transfer Project (IMTP) in Nepal. The objective of the assistance was to transfer the management of selected irrigation systems to water use associations (WUAs). Rehabilitation of the systems is being funded by the Asian Development Bank (AsDB). Satisfactory progress has been made and contractor deliverables and performance indicators have been fulfilled, including the following: (1) The management of the three Phase I subprojects (14,600 ha) has been formally transferred to the WUAs, and WUAs have been formed, registered, and are operating in all 11 IMTP subprojects. (2) Local farmers have developed a strong sense of personal accomplishment, leading to active roles in other local, district, and national civic affairs. (3) WUA- led CMWFs (Canal Management Workforces) have taken over operation and maintenance (O&M) responsibilities in the three Phase I subprojects. (4) Physical rehabilitation is complete in the three Phase I subprojects, and is 90% complete in one Phase II subproject. (5) Joint system walk-throughs have been completed in the eight Phase II subprojects (53,200 ha), which are being prepared for management transfer. (6) All 11 Phase II WUAs (three subprojects have two WUAs) have opened and are operating bank accounts; 5 have prepared Action Plans (APs), and 5 have signed Memoranda of Understanding (MOAs) with the Department of Irrigation. Key lessons learned are as follows: (1) System rehabilitation. Linking the institutional and physical milestones of irrigation rehabilitation aids implementation. Project innovations (joint walk-throughs, subproject management committees, AP/MOAs, etc.) have had a positive impact. Rehabilitation takes time and should not be rushed; the quality of rehabilitation is very important to breaking the cycle of rehabilitation - decline - rehabilitation - decline. (2) O&M processes. WUAs can perform quality O&M, but must be trained in this area. Good O&M is linked to strong WUAs. The CMWF is a workable concept, but volunteerism may not sustain O&M over the long run. WUAs need to develop realistic O&M budgets and ISF (Irrigation Service Fees) programs. (3) Institutional development. The project must focus on developing local institutions as much as it does on statistical achievements. Particular stress must be placed on the long-term financial viability and self-sufficiency of WUAs. The WUA formation process seems to be working adequately, but the WUA organizational design and structure in large subprojects is sometimes too cumbersome and complicated. Post-turnover support to WUAs is far more critical than originally thought. (4) The role of women. Women will not participate in project activities and benefits unless project implementors make an explicit effort to include them. The project has introduced a number of important innovations in His Majesty"s Government (HMG) and in rural Nepal, e.g., privatization of large public enterprises, grassroots democracy at the village level, and decentralization of decisionmaking. Perhaps most importantly, Phase I and Phase II WUAs have made significant strides in assuming management of the subprojects. The project not only introduced these innovations, but also achieved some degree of success in implementing and managing them. However, the project, which does not end for another 2.5 years (June 2002), needs continued support from HMG, AsDB, and USAID: only 3 of the 11 project irrigation systems have been transferred. Key issues to be addressed include: adequate resource generation at the local level; site-specific post- turnover support; and developing proper roles for the WUAs in business enterprises beyond irrigation. It is important that the project be allowed to succeed by continuing support to irrigation management transfer in Nepal.